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Friday, February 10, 2012




India Briefing is a magazine and daily news service about doing business in India. We cover topics relating to the Indian economy, the market in India, foreign direct investment and Indian law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates



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India’s Communist Party Ends Coalition Support

 

July 10- India’s Communist Party formally ended its support of the Congress-led coalition, over a government decision to push through with a civilian nuclear deal with the United States.

Leftist parties argue that the deal could threaten Indian sovereignty while the government feels the deal is needed to answer the country’s increasing energy demands.

Prime Minister Manmohan Singh's said in a statement that the government will go ahead with seeking approval from the International Atomic Energy Agency for the U.S. civilian nuclear deal.

Prakash Karat, head of the Communist Party of India, said the decision to withdraw their support was necessary because of the government's decision to press ahead with the deal.

In response, Prime Minister Singh, said government stability will not be affected by the leftist withdrawal. Mr. Singh has already secured backing from former adversary, the Samajwadi Party, that should be enough for his party to maintain majority.

The U.S. nuclear deal will give India access to with civilian nuclear technology and military equipment. Sources say that the deal should bring in US$150 billion to India in the next decade for nuclear power plants and modernize its transportation system.

On Wednesday, the draft of the India-specific nuclear safeguard pact with the International Atomic Energy Agency was released for approval to the nuclear watchdog's 35-nation Board of Governors. The move is the next step in finalizing the Indo-US civil nuclear deal.

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